The Importance Of Linking Internal And External Supply Side Organising - Purchasing Transformation In The Service Sector

In response to the changing role of purchasing, companies are reorganising their purchasing function. Increasingly purchasing is becoming important for value generating purposes as a complement to previous price chasing focus. This trend was first visible in manufacturing companies, but lately services companies are also reviewing their purchasing function. This paper presents a case study from the financial services industry where a UK bank is currently involved in major transformations. The main purpose of the paper is to analyse the interplay between internal and external organising of the purchasing function.